Nonfinancial measures of quality, manufacturing cycle efficiency. (CMA, adapted) Turnkey Manufacturing evaluates the performance of its production managers based on a variety of factors, includ- ing cost, quality, and cycle time. The following are nonfinancial measures for quality and time for 2016 and 2017 for its only product: Nonfinancial Quality Measures Number of returned goods 2016 2017 500 1,000 Number of defective units reworked 2,500 2,000 Annual hours spent on quality training per employee 36 54 Number of units delivered on time 20,000 34,000 Annual Totals 2016 2017 Units of finished goods shipped Average total hours worked per employee 25,000 1,800 40,000 1,800 The following information relates to the average amount of time needed to complete an order: Time to Complete an Order 2016 2017 Wait time From customer placing order to order being received by production From order received by production to machine being set up for production Inspection time 14 10 5 3 Process time 4 4 Move time 2 2

Nonfinancial measures of quality, manufacturing cycle efficiency. (CMA, adapted) Turnkey Manufacturing evaluates the performance of its production managers based on a variety of factors, includ- ing cost, quality, and cycle time. The following are nonfinancial measures for quality and time for 2016 and 2017 for its only product: Nonfinancial Quality Measures Number of returned goods 2016 2017 500 1,000 Number of defective units reworked 2,500 2,000 Annual hours spent on quality training per employee 36 54 Number of units delivered on time 20,000 34,000 Annual Totals 2016 2017 Units of finished goods shipped Average total hours worked per employee 25,000 1,800 40,000 1,800 The following information relates to the average amount of time needed to complete an order: Time to Complete an Order 2016 2017 Wait time From customer placing order to order being received by production From order received by production to machine being set up for production Inspection time 14 10 5 3 Process time 4 4 Move time 2 2

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter14: Quality And Environmental Cost Management

Section: Chapter Questions

Problem 7E: Rachel Boyce, president of a company that manufactures electronic components, has a number of...

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